The Effects of Internal Environment on Employee Performance

Filed in Articles by on November 7, 2022

The Effects 0f Internal Environment on Employee Performance.


The importance of the working environment of any organization to a very large extent determines the performance of employees in that organization which in turn determines the success of such organization.

This study is intended to explore the effects of the internal environment on job performance and the make-up of what constitutes an internal environment in the company used as a case study.

There are various factors that determine an internal environment such as leadership styles, cash flow position, government legislature, and motivation.

The employees’ performance on the jobs is basically a function of two variables; one is the individual’s ability to perform the job, and secondly, the motivation that encourages or drives him to use this ability in the actual performance of the job.

It is widely assumed that motivating persons who possess high ability will lead to a greater increase in performance and productivity.

There was a decline in staff turnover in the company understudy, who left in search of better working
the environment in terms of better promotion.

Policy, better remuneration, and better working conditions. This has reduced the performance of some workers as well as their productivity and efficiency.

This led to finding out if incentives such as bonuses are attractive enticements to workers and also to find out if salaries paid in the company under study are considered attractive when compared to other manufacturing companies.

Both primary and secondary methods of data collection were used for this study. The population was determined, sample drawn and questionnaires designed for data collection.

Data was collected, analyzed, and interpreted. The study, therefore, recommends that the work environment should be made conducive and improved in terms of nature of supervision, boss-employees relationship, and employee-employee relationship, and most important in terms of motivation.


Title Page i
Approval Page ii
Certification iii
Dedication iv
Acknowledgment v
Abstract viii
Table of Contents ix


1.1 Background of Study 1
1.2 Brief History of Unilever Nigeria Plc 8
1.3 Statement of Problem
1.4 Objective of the Study
1.5 Significance of Study 11
1.6 Scope of Study 12
1.7 Limitations of Study 12
1.8 Research Questions 13
1.9 Research Hypothesis 14
1.10 Definition of Terms 15
References 17


2.0 Introduction 18
2.1 Historical Background 18
2.1.1 The notion and the Value of Work 19
2.2 Theoretical Framework 19
2.2.1 Why Do Men Work 19
2.2.2 What is Work Environment 21
2.2.3 Determinant of Work Environment 23
2.2.4 Leadership/Managing Style 23
2.2.5 Motivation and Productivity 25
2.2.6 Job Enlargement and Enrichment 34
2.2.7 The concept of Job Satisfaction 35
2.2.8 Operationalizing Job Satisfaction 36
2.2.9 Job Satisfaction and Employee’s Performance 37
2.3 Cashflow Position 39
2.4 Government Legislation/Policies 40
References 41


3.0 Introduction 42
3.1 Research Design 42
3.2 Identification of Population 42
3.3 Method and sources of Data 43
3.3.1 Primary Data 43
3.3.2 Secondary Data 43
3.4 Questionnaire Design 44
3.5 Questionnaire Assumptions 45
3.6 Data Analysis 45
3.7 Limitation of the Research Methodology 47
3.8 Restatement of Research Questions and
Research Hypothesis 48
References 49


4.1 Data Presentation 50
4.2 Analysis of Questionnaire 50
4.3 Test of Hypothesis 61


5.1 Summary of Major Findings 72
5.2 Recommendations 76
5.3 Conclusion 77
Bibliography 80



Man wherever he is, be it at home, school, or even the company he keeps is always influenced by his internal environment. The reason being that he is easily assimilated into the totality of his environment.

Generally, internal environment refers to one’s immediate surroundings including water, air, land in which one lives
that influence one’s life.

But for the purpose of this research, the internal environment here shall be referred to as elements within the work environment, such as working environment, management style, inter-relationship amongst staff, and motivational factors – incentives, salary increase, and opportunity to develop oneself.

These have effects on the overall performance of an employee. An improved work environment will result in a reduction in the number of complaints and absenteeism and will bring an increase in productivity, Roelofson (2002).


Anyanwu Aham (2000): Research Methodology in business and social sciences in Nigeria. Owerri cannon publishers Nig. Ltd.
Ozo, J. Ubata et’al (1999): Introduction Project Writing for Business and Financial Studies. Enugu Sunny Enterprises.

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